The following question(s) refer to the year-end account balances for Jensen Syst

Question

The following question(s) refer to the year-end account balances for Jensen Systems, Inc. The accounts are listed not in the order they appear on the financial statements. The applicable tax rate is 40%.

Income Statement

300

30

115

600

???

Balance Sheet

35

65

30

(175)

35

120

390

135

200

65

1. What was the company's earnings before interest and taxes (EBIT)?

2. What is the company's tax liability?

3. What was the company's Net Income?

4. What is the company's Total Assets?

5. What is company.'s Total Equity?

Cost of Goods Sold

300

Interest Expense

30

Operating Expense (excluding depreciation)

115

Sales

600

Tax

???

Explanation / Answer

Sale          600 Less Cost of goods sold         (300) Contribution          300 Less Operating expense         (115) Earning before Interest and taxes          185 See this Less Interest           (30) Earning before taxes          155 Tax @ 40%           (62) See this Net Income             93 See this Liabilities Amount Assets Amount Accounts Payable             35 Accounts Receivable 65 Accruals             30 Cash 35 Long term debt          200 Fixed Assets-390 Total Equity Less Accumulated depreciation -175 215 Common Stock-120 Inventory 135 Retained Earnings-65          185 See This Total Liabillities          450 Total Assets 450 See This

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.